"In the recent Budget the Government allocated funds for construction of new metro lines in smart cities to improve public transportation and reduce pollution." Identify the nature of government expenditure & its objective.

Question

Accepted Answer

Metro construction analysis:

Nature of government expenditure:
1. Capital Expenditure
2. Creates infrastructure assets
3. Long-term impact
4. Non-recurring
5. Productive investment

Objective:
1. Improve public transportation
2. Reduce pollution
3. Promote sustainable mobility
4. Create urban infrastructure
5. Support economic growth

Metro construction represents productive capital expenditure that creates lasting infrastructure and improves quality of life in cities.